Essay
On July 5, 2011, the Cowens Company accepted a 90-day, 10 percent note from Rhonda Ballard in settlement of his past-due account for $5,000. On Aug. 4, the Cowens Company discounted the note at the Investment Capital Bank. The bank charged a discount rate of 6 percent. Answer the following questions.
1. What is the maturity date of the note?
2. What is the maturity value of the note?
3. How many days are in the discount period?
4. What is the amount of the discount?
5. What is the amount of the proceeds?
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1.Oct. 3, 2011; 2. $...View Answer
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